India Export Council partners with logistics firm Bollore Africa for pharma product storage

Posted on :Tuesday , 29th December 2015

The India Pharmaceutical Export Council has entered into a partnership with logistics firm Bollore-Africa to allow pharmaceutical companies from the country to store their products shipped to that continent.

Following the agreement with Bollore-Africa, India’s first in the pharmaceutical sector, the Pharmaceuticals Export Promotion Council (Pharmexcil) hopes a common warehousing facility in Nigeria will be operational by February 2016.

The council, which has been trying to establish a common warehousing facility in Nigeria for the past two years, expects 10-15 Indian companies to be able to store vaccines, formulations and bulk drugs in the warehouse.

With this facility, council members can store products in different facilities of the warehouse allowing them to cater to Nigeria and other countries in Africa.

In Nigeria, Bollore has been operating since 1961 and has subsidies in Lagos, Port Harcourt, Abuja, Kano and Warri. Bollore Africa is part of the France-based Group which offers transportation and logistics, communication and media and electricity storage services.

As per the arrangement, the council will lease a storage area which will be allotted to members based on their requirement. Bollore Africa will store and distribute drugs and pharmaceuticals, besides providing other logistic services to the companies.

While North America continues to be India’s biggest destination for pharmaceutical exports, accounting for 29.3% of total exports, exports to Africa and South America grew over 15% and 12% respectively in 2014-15. India’s pharmaceutical exports to Africa amounted to about $3 billion during this year.

Under the customs bond, goods are stored in a warehouse without payment of duty if they are not required immediately but can be cleared from the warehouse when required after paying duty. This enables deferment of payment of customs duty until goods are actually required.

Dr. PV Appaji, Director General of Pharmexcil said this strategy will also work in India’s favour as many Africa importers prefer buying pharmaceuticals from Bangladesh, Pakistan, South Africa, Turkey and Vietnam. After Africa, Pharmexcil has set its sights on South America where it wants to set up a warehouse.

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